Ceridian HR/Payroll Web Payroll Auditing Job Aid. Contents. Continued Learning in Pursuit of World-class Service Excellence

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1 Continued Learning in Pursuit of World-class Service Excellence Ceridian HR/Payroll Web Contents Audit the Preview Results... 2 Trial Payroll Register Section... 2 Tax Checks & Other Payments Section... 4 Trial Payroll Audit Section... 4 Trial Exception Report Section... 6 Audit the Final Payroll Results... 7 Register... 7 Summary... 9 Audit DD/OCC Register Publication date 3/ by Ceridian Corporation All rights reserved. Printed in the United States of America. Ceridian is a registered trademark of Ceridian Corporation. Product names mentioned herein may be trademarks and/or registered trademarks of other companies. ID KC TC JP

2 2 Audit the Preview Results Audit the Preview Results The purpose of auditing the Preview Results report is to be sure that your data entry is correct and complete. Adjustments to pay or deductions as well as regular payments are included. Every company will have unique auditing needs to ensure the preview results indicate their payroll is ready to be sent to Ceridian for processing. Ceridian recommends the following audits to balance and review your trial payroll. Trial Payroll Register Section The Trial Payroll Register section allows you to view hours and gross earnings, calculated tax amounts, scheduled versus calculated deduction amounts, and net pay for all employees paid in the current pay period. Use this section to audit any special payments included in a regular or separate check, as well as checks for new hires or terminations. Review any deductions that calculate as a percentage (such as 401k) to verify the calculation is looking at the correct earnings (all earnings or only certain earnings). Verify the Employee Information section for employees who live and work in different states. Incorrect set up in the Personal page (Resident Tax GeoCode and State Reciprocity selections) and Organization page (Work Location selection) will result in incorrect tax calculations and withholding. Additional checks display as separate items from the employee's Regular check. Review additional checks to ensure correct taxation, deductions, and payment method (live check or direct deposit/paycard). Check numbers for live checks will show as until the payroll is processed when the actual check number will be assigned.

3 Audit the Preview Results 3 All Xpresschecks posted and/or printed will display. Review Xpresschecks to verify taxation, deductions, and net pay appear correctly. The check number you entered will display in the Check # column. In this example, no deductions were included in the Xpresscheck. You may need to edit the Xpresscheck, enter the missing deductions and calculate the check again to update the tax amounts and net pay. Review void checks (Auto Voids and Voids) to ensure the correct net, taxes, deductions, and gross amounts are being reversed in the Payroll System. Verify department totals to see if amounts are out of the normal range. Look for special payments such as commissions, bonuses, auto allowance, or reimbursements. Balance the hours to a report from a time clock system, time cards, or spreadsheets to determine if any hours are under or over-reported (there may be errors or missing entries in your time entry pages or a time file may have been imported more than once). Verify company totals to see if amounts are out of the normal range. Look for totals for special payments such as commissions, bonuses, or auto allowance. If a new deduction was established for your company, you can look at the Voluntary Deductions totals to verify that entries appear.

4 4 Audit the Preview Results Tax Checks & Other Payments Section If your company uses the Third-party Payee feature, use this section to audit checks that will be created for deductions that are linked to a Payee. Depending on the Payee definition, there may be one consolidated check or employee-level detail. Trial Payroll Audit Section The Payments section displays first. All employees are listed, even those without entries such as salary or exception employees who will be automatically paid. Entries made through the Check Entry pages (Regular, Additional, Xpresscheck, Void, or Manual) display. Entries made in the Multiple Time Entry and Auto Time Entry pages are also listed. You may find it easier to verify the data entry for special payments or find the Voids by scanning Payments. Review the Changes section to confirm the old and new values of the employee data changes that occurred in the pay period. This may include terminations, deduction and direct deposit changes, and salary changes. In the Category column, pre-tax deductions display with a P, after tax deductions display with a D.

5 Audit the Preview Results 5 Confirm new hire data entered in the pay period. Pay special attention to the Work Location and Res(resident) Location information as well as the federal and state filing status and exemptions. If an employee does not have enough earnings to cover their regularly scheduled deductions, the Deduction Not Taken section displays with the employee information and deductions that will be missed if no changes are made. Review the Trial Payroll Register or Payments section to see if their hours are under-stated. The employee may also display in the next section, Active Employees Not Paid. If an active employee is not going to be paid, the Active Employees Not Paid section displays with the employees and their pay type. Salaried employees appear in this section when Regular hours appear as 0.00 in the time entry or Regular Check page, with no other entries for other pay types. Hourly employees with no hours or earnings entry will display. Make corrections as needed and verify that this section is not included in your next Trial Payroll report. If an Auto Void was processed, the Auto-Void section displays with the void information. If you are an OCC/CDD customer, reversals will automatically be included in your next payroll. If you are not an OCC/CDD customer, you need to manually reverse the direct deposits and checks.

6 6 Audit the Preview Results Trial Exception Report Section Identify tax variances. Causes of a tax variance could be a mistyped or miscalculated tax amount in a manual or void check. You may also be entering a void in the current quarter for an employee who terminated in a prior quarter so there are no current quarter-to-date wages or taxes to reverse. If an out-of-balance manual check is processed, resulting in under or over withheld Social Security or Medicare, the Payroll System will automatically make the adjustment (withhold more or less) in the next pay period. If the tax variance/error is due to a data entry error, make sure to identify that in the Trial Payroll report, otherwise the regular check issued in the next pay period will be wrong. If you find errors during your audit, reject the Preview Results, make corrections, then run another Preview. You can run the Payroll Preview as many times as necessary.

7 Audit the Final Payroll Results 7 Audit the Final Payroll Results HR/Payroll Web provides a variety of standard payroll reports that you can view immediately after the payroll is processed. These reports contain check transaction information, totals for the payroll, and error messages. The following payroll reports should be reviewed each time you process payroll: Register Summary Audit DD/OCC Register Register The layout for the Register is similar to the Trial Payroll Register. It displays employee check transactions for employees paid in the current pay period with department and company totals at the end. Employees not paid in the current period do not display. You may need to refer to a year-to-date register to see all employees. For information about sorting options, contact your Ceridian representative. Check numbers display for live checks and deposit advices show the voucher number. Contact your Ceridian representative if you would like to receive the month-to-date, quarter-todate or year-to-date registers. You can request to see vacation, sick or PTO (paid time off) accruals and available balances on your Payroll register.

8 8 Audit the Final Payroll Results Many of the same items reviewed in the Trial Payroll Register should be reviewed in the Current Register. Every company will have unique auditing needs. Ceridian recommends the following audits as a starting point: Verify that special payments and adjustments are correct. Review the checks for new hires and terminations. Verify that employees who live and work in different states are set up correctly and the taxes calculated correctly. Verify that the wage and tax amounts display for the correct state and local jurisdictions in the Tax Deductions section. If your company uses the Third-party Payee check feature, the last page of the Current Register will display any checks created.

9 Audit the Final Payroll Results 9 Summary The Summary report displays department and company-level current, month-to-date, quarterto-date, and year-to-date information about earnings, deductions, and taxes (both employee and employer). The report also includes a breakdown of company wages and tax liabilities by jurisdiction. Note the employer tax liabilities in the Tax Expense Summary at the end of each department as well as on the Company Totals pages. The Tax Expense Summary section includes the SUI rates on record for your company.

10 10 Audit the Final Payroll Results The following is an example of the Wages and Tax Liabilities page: You can review the ID numbers on record for all jurisdictions in the Wages and Tax Liabilities section. Verify the Tax Service Impound amounts and the Net Payroll (the total payroll) that will be debited from your account in the Net Payroll and Impounds section located toward the end of the report. The debit amount is the Total, not the Adjusted Total. If you use Official Ceridian Check (OCC), the total includes check amounts. If you do not use OCC, then the debit is for taxes and direct deposits only.

11 Audit the Final Payroll Results 11 Audit The Audit report is similar to the Trial Payroll Audit section of the Preview report. This report displays a detailed listing of payments made to each employee and a list of employee-level changes that affect the payroll. The report may also include the Deductions Not Taken, Active Employees Not Paid, and the Exceptions sections if corrections were not made after auditing the Preview report. Any missed deductions showing in the Deductions Not Taken section will not automatically be taken in the next pay period. They must be manually added to the next pay period as an adjustment. All exceptions should be corrected before the payroll is processed. For Ceridian Tax Service customers, any unresolved exceptions such as wage and tax variances may result in incorrect tax reporting, late payroll tax filings, and penalty situations.

12 12 Audit the Final Payroll Results DD/OCC Register Run the DD / OCC Register (Direct Deposit / Official Ceridian Check Register) to view employee PayCard and direct deposit transactions. The register lists the employee s department, number, name, deposit amount, account number, transit routing number, and where the money was deposited checking, savings, or PayCard. Any pre-notes will show as $0.00 with Prenote in the Comment column.